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UNIVERSITY  OF  N.C.  AT  CHAPEL  HILL 


00042093215 


FOR  USE  ONLY  IN 
THE  NORTH  CAROLINA  COLLECTION 


MS  TITLE  HAS  BEEN  MICROFILMED 


j>n  Butler 


Proposed 

\ftaleigb  and  Eastern  Ttorth  Carolina 
Railroad  Company 


Trom  the  Capital  to  Atlantic  tidewater. 


PROSPECTUS 


Raleigh  &  Eastern  North  Carolina 
Railroad  Company. 


Raleigh,  N.  C,  February  i,  1902. 

To  issue,  if  actually  needed  for  construction  and 
equipment,  $1,200,000.00  5  per  cent  semi-annual  gold- 
bearing  bonds,  at  thirty  years  maturity,  payable 
monthly  as  work  progresses,  and  not  over  $100,000.00 
per  month,  making  interest  first  year  2  1-2  per  cent. 
Three  hundred  thousand  dollars  preferred  stock,  to  bear 
8  per  cent  interest  before  any  interest  is  paid  on  com- 
mon stock.  This  stock,  to  the  amount  of  $150,000.00, 
to  be  put  on  the  market  at  $100.00  for  paid-up  $100.00 
share.  One  hundred  and  fifty  thousand  dollars  to  be 
kept  in  treasury  of  railroad  company,  not  to  be  sold 
for  less  than  par,  and  then  only  for  betterments,  im- 
provements or  investments,  and  then  only  as  authorized 
by  Board  of  Directors.  Before  work  is  commenced,  10 
per  cent  of  the  amount  subscribed  to  this  preferred 
stock  must  be  paid  into  the  treasury  of  this  company, 
and  10  per  cent  each  month  for  nine  months  thereafter ; 
but  no  assessment  of  the  stock  to  be  made  until  per- 
fectly reliable  banking  houses  or  trust  company  have 
been  agreed  upon  to  handle  all  the  bonds,  if  necessary, 
on  equitable  terms  to  this  company.,  It  is  expected  that 
the  citizens  of  Raleigh  will  take  $50,000,  the  citizens  of 
Wilson  like  amount,  the  citizens  of  Greenville  and  Wash- 
ington  $50,000.00,   making   in   all   $150,000.00   in   pre- 


ft 


ferred  S  per  cent  stock  for  $150,000.00,  to  be  paid  in  ten 
months.  This  is  certainly  a  good  investment,  and  will 
no  doubt  pay  its  interest  after  the  road  has  been  fully 
constructed  and  in  operation  for  one  year. 

Four  hundred  thousand  dollars,  common  stock,  to  be 
issued  to  the  promoters  on  a  basis  to  be  arranged  by 
them  for  the  purpose  of  putting  the  bonds  on  the  market 
at  about  par  value.  As  this  line  is,  to  all  intents  and 
purposes,  the  citizens'  transportation  company  of  Ra- 
leigh, Wilson,  Greenville  and  Washington,  it  will  ar- 
range that  the  majority  of  this  common  stock,  which 
will  control  the  voting  power  and  affairs  of  this  company, 
be  held  in  trust  for  at  least  ten  or  more  years,  and  can  not 
be  sold,  leased  or  transferred  to  any  competing  or  paral- 
lel transportation  lines  or  common  carrier.  It  will 
have  the  right  to  merge  with  or  into  any  railroad  con- 
nection at  the  extreme  terminal,  but  under  no  circum- 
stances shall  the  original  R.  &  E.  N.  C.  R.  R.  be  bonded 
for  more  than  $12,000.00  per  mile,  without  the  consent 
of  all  the  bondholders  and  a  majority  of  the  preferred 
and  common  stockholders.  It  is  now  understood  for  the 
present  that  the  western  terminus  of  this  company  will 
lie  Raleigh,  and  the  eastern  terminus  to  be  Washington, 
N.  C,  or  some  point  on  the  Norfolk  and  Southern  R.  R,, 
in  Beaufort  or  Washington  counties,  N.  C,  or  beyond  in 
an  easterly  or  northeasterly  direction. 

There  is  estimated  to  be  50,000  carloads  of  lumber 
between  Raleigh  and  Wilson,  25,000  between  Wilson 
and  Greenville,  and  15,000  between  Greenville  and 
Washington,  total  90,000.  Estimating  this  at  one-half, 
45,000  cars,  at  $15.00  per  car,  would  give  a  revenue  of 
$675,000.00,  divided  into  ten  years,  making  $67,000.00 
per  annum.  A  very  small  estimate  of  three  thousand 
cars  of  cordwood  per  year  would  be  hauled  into  the 


four  cities  mentioned  above,  at  60  cents  per  cord,  ten 
cords  to  the  car,  $6.00  per  car,  or  $18,000.00  per  annum. 
Unlike  many  sections  of  North  Carolina  and  our  South- 
ern States,  a  large  portion  of  this  land  which  this  road 
will  pass  through,  or  adjacent  to,  is  more  valuable  with 
the  timber  removed,  being  fertile  and  adapted  to  cotton 
and  particularly  to  tobacco  culture.  No  estimate  of 
revenue  whatever  is  made  for  transporting  cotton  and 
tobacco  from,  or  fertilizers  and  provisions  into,  the  in- 
terior, although  these  are  largely  handled  at  the  follow- 
ing stations  other  than  the  four  cities  named  above: 
Louisburg,  Henderson,  Youngsville,  Franklinton  and 
other  stations  on  the  west  boundary  of  the  S.  A.  L.  road ; 
Clayton,  Selma  on  the  southern  boundary  on  Southern 
Railway;  Rocky  Mount,  Elm  City  on  the  east;  Spring- 
hope  and  Nashville  on  the  north  boundary  on  A.  C.  L. 

With  the  exception  of  the  Louisburg  Branch,  ten  miles 
in  length,  and  the  Springhope  Branch,  nineteen  miles 
in  length,  with  rather  inferior  construction  and  not 
extraordinary  good  service,  both  north  of  the  Tar  River, 
there  is  the  following  territory  without  railroad 
facilities:  Twenty-five  miles  square,  or  625  square 
miles  between  Raleigh  and  Wilson,  about  400  square 
miles  between  Wilson  and  Greenville  without  railroad 
facilities  except  on  the  extreme  boundaries;  east 
of  Greenville  and  south  of  Tar  River  and  Washington 
there  is  about  500  square  miles  of  territory  without  a 
railroad  except  on  the  extreme  boundary,  on  the  north, 
south  and  west,  and  the  tide-water  on  the  east.  This 
would  give  us  a  territory  of  about  1,525  square  miles,  or 
976,000  acres  of  land,  to  draw  some  of  our  tonnage  from 
for  revenue.  It  would  not  be  unreasonable  to  presume 
that  one-half  of  this  territory  is  either  under  cultiva- 
tion or  in  timber,  and  that  this  new  line  must  necessarily 
control  50  per  cent  of  this  tonnage,  viz.,  one-half  of  976,- 


000  acres  would  be  488,000  acres,  and  allowing  the  very 
small  estimate  of  one-half  ton  production  of  timber,  then 
products  to  the  acre  would  give  us  244,000  tons,  at  the 
extremely  low  estimate  of  50  cents  per  ton  for  transpor- 
tation, which  would  be  $122,000.00,  and  at  least  ought 
to  be  added  to  our  estimate  of  revenue.  There  are  large 
quantities  of  undeveloped  granite  in  Wake,  Johns  ton  and 
Nash  counties,  and  without  the  proposed  R.  and  E.  N.  C. 
R.  R.,  this  valuable  granite  will  remain  dormant,  while, 
on  the  other  hand,  it  can  be  made  a  very  valuable  enter- 
prise and  a  large  revenue  to  this  railroad.  We  have  not 
calculated,  so  far,  this  tonnage  as  a  source  of  revenue 
to  our  company.  The  R.  and  E.  N.  C.  R.  R.  will  pass 
through  the  middle  eastern  half  of  Wake  County, 
through  the  middle  Wilson  and  Pitt,  into  Beaufort  and, 
possibly,  Washington.  It  will  probably  touch  the  north 
end  of  Johnston,  the  southern  portion  of  Nash,  and 
within  a  few  miles  of  Greene  and  Edgecombe  counties. 

1  herewith  attach  report  from  Agricultural  Department 
as  to  the  soil  production,  population,  tax  assessment  of 
the  above  counties.  In  the  event  Congress  should  fa- 
vorably consider  the  deep-water,  inland  channel  route 
between  Beaufort  and  Norfolk,  or  deepening  by  rock 
jetties  the  sand  bar  inside  of  Ocracoke  Inlet  to  the  depth 
of  this  inlet,  also  the  river  to  a  few  miles  east  of  Wash- 
ington gives  us  a  depth  of  water  of  14  to  16  feet,  ample 
for  all  sailing  vessels,  coastwise  steamers  and  all  ordi- 
nary ocean  vessels.  There  is  about  200  miles  of  North 
Carolina  coast,  without  a  sea-going  vessel  leaving  its 
coast,  except  Wilmington,  in  fact  being  the  only  port  in 
North  Carolina.  This  ought  not  to  be,  and  with  abund- 
ance of  rock  granite  within  fifty  miles  of  the  tidewater 
on  the  R.  and  E.  N.  C.  R.  R.,  any  jetty  work  could  be 
done  at  the  extreme  minimum,  which  seems  possible, 
it  would  place  Washington  on  a  parity  with  most  of 


the  South  Atlantic  ports,  'and  the  many  inlets 
being  perfectly  safe  harbors  in  case  of  storm.  It 
will  place  Raleigh  and  Wilson  almost  at  tide-water,  and 
nearer  than  most  interior  cities  of  like  importance. 
Without  the  action  of  Congress,  or  deepening  this  in- 
land channel,  or  direct  ocean  line  thorugh  Ocracoke 
inlet,  Washington  has  now  ample  depth  of  water 
for  ordinary  inland  channel  draught  vessels,  and 
with  proper  encouragement  for  tonnage,  the  water  trans- 
portation line  would,  no  doubt,  give  ample  service  and 
facilities  for  the  business  offered,  and  with  this  almost 
east  and  west  direct  railroad,  the  cities  and  country 
through  which  it  runs,  must,  most  assuredly,  reap 
considerable  benefit  thereby.  On  the  other  hand, 
if  this  road  should  be  extended  to  a  junction  with  the 
Norfolk  and  Southern,  or  to  Plymouth,  with  a  connec- 
tion with  the  Suffolk  and  Carolina,  it  would  open  up 
another  line  to  the  port  of  Norfolk,  and  would  be  less 
than  fifty  miles  longer  than  the  present  shortest  rail  line. 
We  would  have  nearly  as  short  a  line  from  Raleigh  to 
Richmond  via  Wilson  and  the  A.  C.  L.  as  the  shortest 
line  now  exists,  and  we  think  it  barety  possible  to  handle 
some  Richmond  and  Raleigh  business  via  this  route.  We 
have  not  figured  this  into  our  revenue,  however.  We 
have  guarantees  in  writing  from  most  of  the  business 
men  of  Raleigh,Wilson,  Greenville  and  Washington  that, 
everything  being  equal  in  freight  rates,  and  practically 
in  time,  they  will  order  their  freight  over  this  line.  Nor- 
folk and  Richmond  being  the  natural  gateways  for 
North  Carolina  and  its  tributary  business,  a  line  run- 
ning, as  this  road  will,  must  assuredly  coDtrol  a  large 
tonnage,  opening  up  new  fields  of  commerce  and  not 
necessarily  seriously  injuring  its  competitors. 


Possible  Revenue  Estimate,  Based  Upon  Actual  Earnings  of  the 
Railroads  now  Entering  the  Four  Cities  Above  Mentioned, 
Which  this  Line  will  go  to  or  through  : 


Inward 

Freight 

Revenue. 

Outward 

Freight 

Revenue. 

Total. 

Raleigh— 

S.  A.  L.  proportion 

$200, 000 

75, 000 

200, 000 
150,000 

100, 000 
60, 000 

100, 000 
40, 000 
60, 000 

$50, 000 
75. 000 

200, 000 
150, 000 

100, 000 
60, 000 

100, 000 
40, 000 
60,000 

$250, 000 

Southern  Railway 

Wilson 

150, 000 

A.  C.  L.  proportion 

300, 000 

Greenville 

A.  C.  L.  proportion 

120, 000 

Washington— 

A.  U.  L.  proportion 

200, 000 

0.  D.  S.  S.  Co.  proportion 

Express,  fish,  etc 

Grand  total 

$1,020,000 

Passenger  business  not  calculated  or  included  in  this 
estimate. 

It  would  not  be  unreasonable  to  presume  that  this  new 
line,  running  from  Raleigh  through  Wilson,  Greenville 
and  Washington  to  tide-water  or  other  connection  with 
Norfolk,  that  this  citizens'  line,  business  men's  enter- 
prise, that  25  per  cent  of  the  above  revenue  would  not 
accrue  to  it. 

Revenue  from  the  four  cities  above,  per  annum,  $250,000 
Revenue  from  lumber  and  timber,  per  annum.  67,000 
Revenue  from  cordwood,  per  annum 18,000 


Total   1335,000 

We  know  that  this  line  can  be  operated  for  60  per  cent 
of  its  gross  earnings  (fuel  being  the  largest  item  in  op- 
eration, can  be  had  for  $1.00  per  cord,  delivered  on  its 


right-of-way),  would  be  $201,000.00  for  operation,  leav- 
ing $134,000.00  for  fixed  charges  and  interest  on  stock. 
Interest  on  bonds,  $60,000.00;  taxes,  $10,000.00;  total, 
$70,000.00 ;  adding  $12,000.00  interest  on  preferred  stock 
would  still  leave  $52,000.00  to  pay  interest  on  common 
stock,  purchase  additional  equipment  if  needed,  make 
permanent  improvements  and  betterments.  Our  figures 
are  inside  of  an  extremely  conservative  estimate  as  to 
earnings,  operating  expenses,  construction  and  equip- 
ment, hence  we  do  not  know  a  safer  or  better  investment 
in  North  Carolina.  Without  commenting  upon  the  ne- 
cessities of  our  cities  and  country  that  this  line  will  tra- 
verse, we  will  simply  mention  one  or  two  points  that 
our  people  want  and  do  demand.  Better  transportation 
facilities  between  our  capital,  the  eastern  portion  of  our 
State  and  between  the  territory,  towns  and  cities  through 
which  this  road  will  pass.  It  now  takes  about  eight 
hours  to  come  from  Washington,  Plymouth  and  Green- 
ville to  Raleigh,  when  it  should  not  take  more  than  three 
or  four  hours,  and  at  nearly  one-half  the  cost,  hence 
comments  are  quite  unnecessary.  A  large  portion  of  the 
State  that  this  line  will  traverse  is  the  best  wooded, 
most  fertile,  thickly  populated,  and  easily  to  construct 
a  railroad  as  compared  with  any  portion  of  North  Caro- 
lina, and  we  might  say  of  any  of  our  Southern  States. 
The  line  having  been  practically  located  by  an  eminent 
civil  engineer,  and  inspected  by  an  experienced  railroad 
operating  official,  who  rode  through  the  country  and 
pronounced  the  line  perfectly  feasible,  practicable  and 
without  any  particular  inconveniences  of  construction 
or  operation,  not  having  a  grade  over  one  per  cent  or 
curves  of  over  four  degrees.  Does  not  cross  any  large 
or  navigable  streams,  except  at  Washington;  at  this 
point  a  wagon  or  county  bridge  is  maintained  with  per- 


8 

feet  safety,  as  foundation  is  good  for  driving  piles. 
There  is  now  constructed  a  good  lumber  road  from  Ply- 
mouth to  within  about  eleven  miles  of  Washington, 
depot  at  latter  place  for  this  road  now  being  erected, 
and  it  is  contemplated  this  road  will  be  completed  to 
Washington  within  the  next  few  months.  This  line 
intends  to  connect  with  the  Suffolk  and  Carolina  Rail- 
road by  transfer  boat  from  Plymouth  to  Edenton — the 
Suffolk  and  Carolina  road,  now  arranging  their  bonds  in 
Baltimore,  where  the  road  is  owned,  to  make  it  a  stand- 
ard-gauge line  and  extend  it  from  Montrose  Landing  to 
Edenton,  a  distance  of  about  twenty  miles,  thence  to 
Suffolk  and  beyond  to  Norfolk,  via  S.A.L.,  N.  and  W.,  or 
A.  C.  L.  A  standard-gauge  road  is  now  projected  be- 
tween New  Bern  and  Washington ,  which  will  run 
through  a  very  rich  and  fertile  country,  producing  early 
produce  in  large  quantities  for  Eastern  markets.  The 
southern  terminus  of  the  Eastern  Carolina  Railroad, 
running  from  Tarboro  south,  will  connect  with  our  line 
at  its  southern  terminus.  These  three  connections  must 
naturally  contribute  something  towards  the  tonnage 
of  our  line,  which  is  not  included  in  our  revenue  esti- 
mate. While  at  this  time  we  have  not  contemplated  a 
branch  from  our  main  line  to  Rocky  Mount,  still  this  is 
quite  feasible,  and  will  shorten  the  rail  line  between 
Raleigh  and  Norfolk  twenty  miles  and  be  the  shortest 
line  between  these  two  points,  and  no  doubt  we  would 
get  some  business  into  and  out  of  Rocky  Mount. 


9 

ESTIMATED  COST  OF  CONSTRUCTING  AND 
EQUIPPING  THE  RALEIGH  AND  EASTERN 
NORTH  CAROLINA  RAILROAD  BETWEEN  RA- 
LEIGH AND  WASHINGTON,  N.  C,  ONE  HUN- 
DRED MILES  MAIN  LINE  AND  TEN  MILES 
SIDE-TRACK  AND  TERMINAL  FACILITIES: 

Grading  main  line,  f 2,500  per  mile f 250,000 

60-lb.  steel  rails,  94  1-4  tons  per  mile,  9,400  tons, 

at  |30  per  ton   282,000 

Ties,  2,640  per  mile,  at  25  cents,  264,000,  size  7 

by  8  by  9 66,000 

Angle-bars,  317  per  mile,  33-ft.  rail,  31,700  pair, 

at  60  cents  per  pair 19,020 

32  kegs  track  spikes  per  mile,  3,200  kegs,  at 

$3.70  per  keg 11,840 

7  kegs  bolts  and  nuts  per  mile,  700  kegs,  at  $5.80 

per  keg    4,060 

1,268  washers  per  mile,  126,800,  at  one-half  cent 

each    634 

Labor  and  tools,  per  mile,  laying  track,  $250  .  .  .     25,000 

Labor,  surfacing,  per  mile,  $175   17,500 

10  miles  of  sidings,  including  grading,  second- 
hand 50-1  b.  released  steel  rails,  switch  fix- 
tures, switch  and  grade  ties,  and  labor,  $1  per 

running  foot,  5,280  lineal  feet 52,800 

Bridging  Neuse  River 10,000 

Trestle  and  draw-bridge,  Washington,  N.  C.  ...     35,000 
Raleigh     right-of-way     and     ground,     $30,000, 

freight  depot  $4,000,  passenger  depot  $2,500 .     36,500 
Wilson  right-of-way  $10,000,  freight  depot  $4,- 

000,  passenger  depot  $2,500   16,500 

Greenville  right-of-way  $5,000,  combined  depot 

$4,000 9,000 


10 

Washington  right-of-way  $10,000,  combined  de- 
pot $4,000   $14,000 

5  intermediate  stations,  $500  each 2,500 

3  passenger  engines,  $4,000  each,  second-hand, 

4  new  freight  engines,  $8,000  each 44,000 

50  new  flats,  $400  each,  50  new  box-cars,  $600 
each    50,000 

6  coaches,  $3,000  each,  3  new  baggage  cars,  $2,- 

000    24,000 

3  combination  baggage  and  passenger  coaches, 

$2,000  each   6,000 

Estimating  for  current  expenses  during  con- 
struction of  line  for  one  year,  engineer  corps, 

superintending,  etc 50,000 

Machine  and  car-shops,  tools  and  power,  at  Ra- 
leigh       50,000 

Total   1,076,354 

In  submitting  the  above  estimate,  actual  prices  and 
cost  are  given  where  possible  to  obtain  same,  such  as 
rail,  ties,  angle-bars,  spikes,  cars,  engines,  etc. 

It  would  not  be  necessary  to  at  first  build  or  pur- 
chase the  100  cars.  They  could  be  gotten  as  necessity 
requires. 

Would  not  be  necessary  to  expend  $50,000  at  once  for 
shops,  tools,  etc. ;  could  be  erected  and  purchased  as  ne- 
cessity requires.  We  have  allowed  considerable  amount 
for  right-of-way  into  the  four  cities,  which  may  be  re- 
duced, except  at  Raleigh.  It  is  also  possible  to  get 
along  with  less  than  ten  miles  of  side-track  for  the  pres- 
ent. It  is,  however,  essential  to  be  in  position  to  put 
the  required  amount  of  bonds  and  preferred  stock  on  the 
market,  if  found  necessary  in  the  construction  of  this 
property.     The  bonds  will  not  be  issued  or  sold  except 


11 


as  the  road  progresses,  and  only  to  the  amount  actually 

required. 

Dr.  Emmons  remarks  that  the  swamp  soils  of  North 

Carolina  show  a  greater  capacity  for  endurance  than 
the  prairie  soils  of  Illinois,  notwithstanding  the  annual 
crops  are  less  per  acre;  and  on  the  score  of  location,  he 
is  unable  to  see  that  Illinois  soils  have  the  preference. 

Mr.  Edward  Kuftin,  of  Virginia,  who  studied  Eastern 
North  Carolina  section  with  care,  expressed  high  appre- 
ciation of  the  tide-water  region  for  the  cultivation  of 
grasses,  and  states  there  is  no  better  country  east  of  the 
Rocky  Mountains. 

ANNUAL  FISH  PRODUCTION  ON  THE  ALBEMARLE  SOUND. 

Herring 150.  000,  000 

Shad 5,500,000 

Perch 300, 000 

Sturgeon     __ 10,000 

Striped  Bass 50,  000  pounds. 


County. 

Popula-  |      Property 
tion.              Listed. 

Debt. 

Square 
Miles. 

Wake 

Johnston . .    . . 

Franklin                             . 

54,626  ;     $12,000,000 
32.250           4.000,000 
25,116  i         3,000.000 
23,596  ;         4,000.000 
25.473  I         3.900.000 
12,038  ;         1,500.000 
26,591           3,900,000 
30,889  i         3.600.000 
26,404           3,300,000 

S 17,  000 

14.666 

900 
670 
420 

Wilson          .- 

12,000  '           350 

Nash 

Greene 

Edgecombe .  >_ . 

Pitt 

Beaufort 

520 

3,000  ;          300 

12. 000             500 

!           820 

19,000  ,           720 

256,983  ;       39.200.000 

1 

........ '.         5800 

Cities. 

Raleigh 

Wilson     . . .  .   . 

13,643           4,700,000 
3,  535           2, 000, 000 

Not 
375,000  |  given. 

1  16.(100             .In 

Greenville 

Washington   ... 

2,565               815.000  1 

4,842  1         1,200.000      15.  Oi 

County  tax  about  23  cents,  and  poll  tax  40  per  SI 00. 


Kb: £:> I 


^^•■^  :'/;:*■.■ 


